Optimizations of hired labor pay in the manufacture of food products, beverages and tobacco

Nona Malamova

Abstract: Low-wage Sector in the Production of food products, beverages and tobacco products reduces the opportunities for innovative activity, work motivation and training and ultimately reduces the competitive potential of the sector. Much lower than the European average size of paid employment in conditions of free movement of persons in the European economic area leads to an outflow of skilled personnel. The purpose of this article is to identify sectoral differences in the level of compensation of wage labor and the need to increase its capacity and to offer recommended indices to increase the level of compensation of wage labor. As a result of the analysis is to identify the economic activities with the potential to increase the level of compensation of wage labor and recommended indexes have been proposed to increase the average personnel costs per employee, based on two coefficients:
- Coefficient reflecting the gap between the growth of labor productivity and growth in average personnel costs per employee;
- Coefficient reflecting the distance of Bulgaria from the EU-27 average share of labor costs in the gross value added (GvA) in the sector of food and beverages.

Keywords: apparent labour productivity; personnel costs; personnel costs per employee; production of food products, beverages and tobacco products; share of personnel costs in value added

Date published: 2017-10-03